Treasury flagged the municipality as having a bad cash coverage and says the municipality fails to raise its revenue. The municipality on Friday 8 November appeared before the National Council of Provinces (NCOP). The Select Committee on Co-operative Governance and Traditional Affairs Chairperson, China Dodovu, during the briefing expressed his concerns at the R2,7 billion owed to the municipality. The treasury report says the municipality could only collect a mere 51% of revenue instead of the earmarked 95% from the first quarter. The municipality is yet to comment.

The municipality told Dodovu that it owes the power utility Eskom about R430 million and arrangements have been made between the two parties to repay the debt. It also confirmed that it also owes Midvaal Water Board millions of rands. Dodovu lambasted the municipality over a report by the Auditor General, Kimi Makwetu, which said the municipality did not bother investigating its irregular expenditure which ran into millions of rands. It was also noted in the House that the municipality has had to deal with a fraud case of R1,4 million. The municipality indicated that three persons were since sanctioned to at least five years’ prison term. It was also revealed that there is a certain document missing from the books of the municipality.

In August 2019, Dodovu said the financial distress, instability, collapse of services and governance were amongst some of the pressing issues faced by several municipalities in the North West. Dodovu expressed concern with the state of the municipalities in the province stating that most of them are in a crisis. He said challenges faced by municipalities in this province range from political divisions, to high vacancy rates to some being technically insolvent and unable to deliver the much-needed services to residents.

OFM News